Malta Personal Advice

Local accounts firms can provide advice suitable for Maltese residents, clients considering becoming Maltese residents and clients with income sourced from Malta. Whilst almost all firms are competent to advise on local taxation treatment more specialist firms will have experience of the needs of non-Maltese nationals and will be able to give consideration to the international aspects of personal taxation. Maltese residents (excepting Maltese nationals) are liable to income tax only on income arising in or remitted to Malta. Maltese income tax is charged on a tiered basis up to 35% but since little or no income may be chargeable the effective rate can be much lower or nil. Aside from income tax Malta has one of the lowest social security rates in Europe which is capped at around 3,500 EUR annually (total of employer and employee contributions). An EU citizen can pay their Social Security in any member state and many foreign nationals prefer to pay in Malta. Malta imposes no restrictions on the movement in or out of capital and if part of the EU no restriction can be imposed by the outbound country either.

Maltese Residency
Maltese residency is straightforward for European Union citizens who have a Treaty of Rome right to live and work in Malta without the the need for work permits or residency permits. Non-EU citizens can become resident on a number of grounds including following the grant of a work permit and such residency may grant some freedom of movement within the Schengen area. Please see our main article on residency for more details.

Real Estate
Maltese law restricts the purchase of property to Maltese residents (whether EU or having obtained residency by another route). Non-Maltese residents wishing to acquire property in Malta can do so in designated areas or freely by the registration of a local company or by the obtaining of permit. Most local law firms can handle property purchase. Rates vary greatly and are usually paid as a percentage of the property cost. Local stamp duty, notarial fees and estate agents commission need to be considered and it is beneficial to seek advice before committing to a property purchase to ensure a thorough understanding of all the costs involved.

Inheritance/Estate Planning under Maltese Law or Regarding Maltese Assets
The Maltese law of succession is esoteric and may be incompatible with the laws of other countries especially if there are Maltese partners or children involved. It is therefore prudent to give consideration to the treatment of any assets located in Malta on the death of their owner to avoid the payment of avoidable tax, administrative delays and conflicts between different legal systems. This is relevant also when considering the taking up on Maltese residency and could affect worldwide assets. If you are the beneficiary of an asset under a Maltese will it may be beneficial to seek advice to understand how the asset can be transferred to you in the most efficient way.